Indian equity benchmark -- Nifty -- snapped three-day winning streak on Wednesday ahead of weekly F&O expiry. Besides, investors also awaited crucial inflation data from the US later in the day, which will provide further cues to the investors regarding the Federal Reserve's next move on interest rates. After making an optimistic start, soon index slipped into red, as traders were cautious with ICRA Chief Economist Aditi Nayar’s statement that the wholesale food inflation, which is at a four-month high, will continue to be a cause for concern in May and June as heatwave is likely to jack up prices of perishable commodities. Although the impact of high base of last year will play out in July and August, the impact of monsoon will determine the price conditions in the subsequent months.
In afternoon session, index traded just below its neutral line, as sentiments were weak after an analysis by the Department for Promotion of Industry and Internal Trade (DPIIT) showed that as many as 1,366 government tenders worth Rs 60,276 crore have been found non-compliant with public procurement norms. Meanwhile, in a move towards making the tax filing system more transparent, the Central Board of Direct Taxes (CBDT) has rolled out a new functionality in the Annual Information Statement (AIS) to display the status of information confirmation process. Finally, index ended on flat note with negative bias.